Nigeria’s industrial value fell by 41% –AfDB

Nigeria’s industrial value dropped by 41 per cent between 2012 and this year, the African Development Bank has said.

The President, AfDB, Dr. Akinwumi Adesina, said this in a keynote address delivered at the opening ceremony of the 2018 Annual Meeting of the lender at the Busan Exhibition and Convention Centre, South Korea, on Wednesday.

President of African Development Bank (AfDB), Dr. Akinwumi Adesina

Adesina said the African continent lost a total of $72bn between 2012 and so far this year with Nigeria, South Africa, Egypt and Algeria accounting for most of the drop in value added through industrial production.

The AfDB boss said the loss of industrial production value was responsible for massive unemployment on the continent, adding that the bank planned to invest over $35bn in the next 10 years in a bid to reverse the trend of de-industrialisation of the region.

He said, “Between 2012 and 2018, Africa’s industrial value added declined from $702bn to $630bn, a loss of $72bn. Among countries with the largest industrial output, industrial value added dropped sharply by 41 per cent in Nigeria, 26 per cent in South Africa, 64 per cent in Egypt and 67 per cent in Algeria.

“But some are doing well. Morocco’s industrial output expanded in the period by 16 per cent, as it became the hub for global aeronautical companies.

“Ethiopia witnessed a fivefold increase in its industrial value added, driven by its heavy investments in industrial parks, special economic zones, and strategic partnerships with Chinese companies for its leather industry, and with global textile and garment companies.”

Speaking at the event, the Deputy Prime Minister and Minister of Strategy and Finance, Republic of South Korea, Dong Yeon Kim, said industrialisation policy should take into account the unique conditions of each country.

Meanwhile, the Government of South Korea on Wednesday announced a financial assistance of $5bn for Africa.

The announcement was made at the conclusion of AfDB Ministerial Meeting in Busan.

Adesina had on Wednesday announced that the bank made a disbursement of $7.4bn in 2017, the highest ever made by it in one year since it was founded in 1964.

According to information provided by the AfDB, the Government of South Korea announced the $5bn bilateral financial assistance package for Africa at the conclusion of the Ministerial Roundtable of the Korea-Africa Economic Cooperation.

The financial assistance package will be delivered over two years through partnerships with various development agencies, including but not limited to the AfDB.